Regulatory Alerts2022-06-15
FMA Circular 05/2022 on Principles of Remuneration Policies and Practices
The Austrian Financial Market Authority issued Circular 05/2022 to provide guidance to supervised credit institutions on implementing remuneration principles under Articles 39, 39b, and 39c of the Austrian Banking Act. The document clarifies the scope of application, requiring institutions to align variable remuneration with sustainable performance and long-term corporate success while strictly prohibiting mechanisms designed to circumvent legal provisions. It further details the application of proportionality principles, the definition of staff categories, and the specific responsibilities of supervisory bodies in ensuring sound risk management within remuneration structures.
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